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MCLEAN, Va., February 19, 2002

Online Resources Corp. (Nasdaq: ORCC), a leading outsourcer of e-financial services, today reported financial and operating results for the three months and full year ending December 31, 2001.

• Revenue for the fourth quarter of 2001 increased 34 percent to $6.7 million, versus $5.0 million in the fourth quarter of 2000. For the full year 2001, revenue increased 57 percent to $24.6 million, from $15.6 million in the prior year.
• Gross profit margin increased to 47 percent of revenue, compared to 26 percent in the fourth quarter of 2000. For the full year 2001, gross profit margin was 42 percent of revenue, compared to 16 percent in the prior year.
• Operating loss for the fourth quarter of 2001 declined 71 percent to $1.2 million, versus a $4.2 million loss in the prior year. For the full year 2001, operating loss declined 55 percent to $8.6 million, versus a $19.1 million loss in 2000.
• Net loss for the fourth quarter 2001 declined to $0.13 per share, a 65 percent decline versus the fourth quarter of 2000. Net loss for 2001 of $0.82 per share declined 50 percent versus the prior year. Included are one-time, non-cash charges for conversion of debt to equity of $0.01 per share in the fourth quarter of 2001.

"The Company is poised to become a profitable, high-margin business with excellent prospects for strong, sustainable earnings growth," stated Matthew P. Lawlor, chairman and chief executive officer of the Company. "Our business model is based on recurring user fees from increasing consumer adoption of Internet banking, leveraged over our relatively fixed cost base of proprietary banking, bill payment, call center and e-finance services. This is being confirmed by our 25th consecutive quarter of year-over-year revenue growth exceeding 30 percent-all of which was organic-and our 12th consecutive increase in gross profit margin."

Lawlor added, "As we approach the 50 percent mark for gross margin, we are keenly focused on being EBITDA positive by the end of the first quarter, which should lead to approximately $2 million in EBITDA for the year." EBITDA represents operating earnings before interest, depreciation and amortization.

Lawlor concluded, "We continue to be encouraged by improved adoption within our potential distribution channel to financial institution clients with approximately 9 million checking account relationships. Our unique integrated consumer marketing and eCRM capabilities are showing results with increased consumer adoption of Internet banking and cross-sell to bill payment. Adoption rate for our Internet banking improved to 7.2 percent versus 3.9 percent at year-end 2000, and approximately 50 percent of our users are high margin bill payers."

The Company also reviewed some of its strategic accomplishments in 2001:

• Cited as one of the nation's top 500 technology firms for revenue growth by both Deloitte & Touche and InteractiveWeek (now eWeek) magazine;
• Awarded major new patent for Internet online payments processing, significantly expanding prior real-time payments patent awards in the U.S. and Europe;
• Led consumer service provider component of MasterCard's bill presentment initiative, with its potential to improve consumer bill payment adoption;
• Solidified balance sheet by progress toward profitability and a 35 percent reduction in subordinated debt;
• Increased usage 84 percent to a run-rate of nearly 70 million transactions per year, bringing with it scale economies and a 41 percent reduction in service cost per user;
• Achieved approximately 40 percent improvement in bill payment cross-sell through implementation of new eCRM capabilities;
• Consistently exceeded or met investment analyst earnings expectations and Company earnings guidance for each quarter in 2001.

Year 2002 Business Outlook

The following statements are forward-looking, and actual results may differ materially.

First Quarter of 2002

• The Company expects revenue to increase 8 to 11 percent versus the fourth quarter of 2001.
• The Company expects gross profit percentage to improve to 49 to 50 percent in the first quarter.
• The Company expects to be EBITDA positive by the end of the first quarter, with operating losses (EBIT) declining 38 to 46 percent versus the fourth quarter of 2001.

Full Year 2002

• The Company continues to expect revenue to increase approximately 28 to 32 percent versus the prior year.
• The Company continues to project gross profit margin guidance for full year 2002 of approximately 52 to 55 percent.
• The Company updated its 2002 earnings guidance, expecting EBITDA to range between $1.7 and $2.7 million, with operating earnings (EBIT) in the range between $500,000 loss and $500,000 profit.

The Company will host a conference call discussing this announcement on Tuesday, February 19, 2002 at 4:30 p.m. EST, which is open to the public by dialing 877-590-4770. The call will be recorded and available for playback at 8:00 p.m. EST on February 19 until midnight on Wednesday, February 27 by dialing 800-642-1687 and entering code 2997451. The conference call will also be available via the Company's web site at www.orcc.com, along with the 2002 outlook.

About Online Resources
Online Resources (Nasdaq:ORCC - www.orcc.com) is a leading outsourcer of e-financial services, with over 500 bank and credit union clients. The company's comprehensive QuotienSM suite of services provides Internet banking, electronic bill payment-presentment, and other consumer and small business. e-finance applications. The company performs 24x7 customer care and consumer marketing services, giving clients the benefit of a single, integrated solution, backed by a unique end-to-end service guarantee and real-time transaction capabilities. Online Resources processes approximately 70 million transactions annually, including $3.5 billion in consumer bill payments.

This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to: the company's history of losses and anticipation of future losses; the company's dependence on the marketing efforts of third parties; the potential fluctuations in the company's operating results; the company's potential need for additional capital; the company's potential inability to expand the company's services and related products in the event of substantial increases in demand for these services and related products; the company's competition; the company's ability to attract and retain skilled personnel; the company's reliance on the company's patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.

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